UK Trade Deficit Narrowed Due to Growth in Non-EU exports

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The UK's trade deficit fell to 2.7 billion pounds in May on the back of growing exports, compared with 4.1 billion pounds in April, according to the Office for National Statistics.

The seasonally adjusted volume of exports was 6.6 percent higher, while imports rose 1 percent.

The UK's exports to non-EU countries were unusually higher than exports to the EU, indicating that exporters are adjusting to a supressed by the debt crisis demand from the euro zone, said the British Chambers of Commerce.

The goods deficit was smaller in May – 8.4 billion pounds, compared to 9.7 billion pounds in April, while services remained unchanged –at a surplus of 5.6 billion pounds .

A different report showed that manufacturing output unexpectedly rose by 1.2 percent in May, thanks to an extra working day as a result of a postponed bank holiday.
The Diamond Jubilee and warm weather also helped boost the food and drink sectors, which showed 2.2 percent increase in May, compared to April.

Overall, the economic big picture remains rather negative for Britain, with the seasonally adjusted index of manufacturing falling 1.7 percent in May compared to the same month last year.

Source: BBC

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